Why the economy is the way it is

[abortedsoul]

If you are interested in a relatively short essay that explains, with no BS, why the economy is doing what it is doing, you've come to the right place. So, here it is:

http://mises.org/story/3487

Read it, understand, and respond!

 

[Aqua Sanctuary]

" When the effects of these policies continue to hinder recovery, these policies will first be resisted, then changed, and when they are, we will again see a renewed appreciation for the fruits of sound money and constitutionally restrained government."


Good read. I took a quote from the last paragraph.

 

[abortedsoul]

" When the effects of these policies continue to hinder recovery, these policies will first be resisted, then changed, and when they are, we will again see a renewed appreciation for the fruits of sound money and constitutionally restrained government."


Good read. I took a quote from the last paragraph.

The reasons mentioned in this article were why I never persued a career in economics. It is nice to see some reference to honest changes for the better, rather than simple pipe dreams printed en-masse to placate angry voters.

Glad you liked it

 

[abortedsoul]

Anyone else?

 

[chefjamesscott]

I have not read the article but in a nutshell, when the usa allowed a private corporation to take over control of their standard of monetary existence the problems were conceived. Basically the economy is the way it is world wide because the system of the banks is a pipe dream, they rape and pillage the masses by giving little return on monies in their holding(they actually have less than 13% of hard currency to cover what they have on paper) and they charge lots to loan it out.

Now to read the article.

 

[MadRussian79]

they rape and pillage the masses by giving little return on monies in their holding(they actually have less than 13% of hard currency to cover what they have on paper) and they charge lots to loan it out.

If you have money to keep in the banks to loan then you get the dividends, if you are borrowing money then you pay to do so. If letting people barrow money is the same as RP&B then the interest on my my mortgage put me on the same level as the refugees from Darfur.

 

[abortedsoul]

I have not read the article but in a nutshell, when the usa allowed a private corporation to take over control of their standard of monetary existence the problems were conceived. Basically the economy is the way it is world wide because the system of the banks is a pipe dream, they rape and pillage the masses by giving little return on monies in their holding(they actually have less than 13% of hard currency to cover what they have on paper) and they charge lots to loan it out.

Now to read the article.

I hope you like the article. I have to disagree with a bit of what you said. There is no such thing as "the masses". Each person is an individual, and we operate as such.

If only we had private corporations that were in place over the standard of monetary existence, we'd be way better off because those corporations would actually have an incentive to make money by satisfying customer demand for a sound currency; the federal reserve is a government established bank, and with its ability to set artificial standards it distorts the market. Its hold on currency is enforced by law, removing any customer choice about the matter.

 

[hybridtheoryd16]

That was sort of a educated POV essay, IMO. I find it very odd that there was no mention about manufacturing related to economic downfall. It is said that america was built on manufacturing. And in my life time the biggest hit to america's manufacturing was the free trade agreement. Before the clinton's brought that into office it was unheard of for a company to close down and move to another country. And after it was brought into office companies were having a free for all. Trying to leave the US to reap the benefits of lower wages, not having to pay for benefits, less or no EPA restrictions, lower electric cost, etc. Because they could make there product in another country and ship it back home and not have any tarif to pay. And ever since then I personally have seen a slow down hill slide for the US. Maybe I am bias or maybe its because I live in the manufacturing heart of america, that i have noticed these things. Who knows. I guess we will all just have to sit back and pray that we can keep our jobs and see what happens.

 

[Fish Room Plus]

This is my opinion
#1, the housing bubble started it off. people thought there house value was going to climb & climb. People bought house as investment to live in. Once the buble began to bust, people just walked away. Bank were stuck with houses that couldnt get the money owed. The people that stuck it out wee afraid and shut donw any lose spending
#2 big jump in energy prices..remember $4.50gallon gas?
#3 if people dont spend,store cut inventory, & jobs. Its a cycle
#4 Most peoples investment took a big hit. 401k, stocks, bonds
I know eveyone want to blame Bush, but he didnt force anyone to buy a house they couldnt afford.
We will slowly come out of this. People will starrt to spend, housing will recover, business' will start to hire. It takes time, will not happen over-night. Look at the markets the last 5 months
stock up 30-45%
oil up 70%
copper, aluminum both rising
These are stronge economic signs

 

[Aqua Doctor]

Interesting history;thanks for sharing.

It seems to me that a "flat income tax" would be the way to promote postitive growth/personal savings.

As far as the gold standard; my understanding is that the USD is backed by the price of oil.

IMO. if you look at government as a business it has failed; with near to no accountability.More programs/services means more taxation, with less personal freedom.